System and method for identifying and evaluating nanomaterial-related risk

ABSTRACT

A system, method, and processor-readable medium are provided for quantitatively evaluating risk associated with nanotechnology. An insurance company computing system obtains nanomaterial-related data from a variety of sources, including nanomaterial sensors such as differential mobility analyzers located on-site at an insured facility. The insurance computing system uses the obtained data and a computerized model to compute a risk score that is used in evaluating the insurability of the facility or the operating entity. An insurance policy or modifications to an existing insurance premium are subsequently produced based on the computed risk score.

BACKGROUND OF THE INVENTION

In general, the invention relates to identifying risks associated withnanomaterials. In particular, the invention relates to systems andmethods for quantitatively characterizing risk associated withnanomaterials for the purpose of underwriting insurance policies.

Nanotechnology is the use of molecules and structures with at least onedimension roughly between 1 and 100 nanometers. Such structures andparticles are referred to herein as “nanoparticles”. Nanomaterialsinclude products that include nanoparticles as well nanoparticles,themselves. A nanometer is one billionth of a meter, and a human hairmeasures approximately 50,000 nanometers across. Nanotechnology is theapplication of these nanostructures into useful nanoscale devices.

Nanotechnologies have been hailed by many as the next industrialrevolution, likely to change everything from the cars we drive to theclothes we wear to the medical treatments our doctors can offer. Despitetheir small size, nanotechnologies offer tremendous benefits. From newcancer therapies to pollution-eating compounds, from more durableconsumer products to detectors for biohazards like anthrax,nanotechnologies are changing the way people think about the future.

Examples of current nanotechnology projects cover agriculture, food,health, semiconductors, textiles and energy sectors. Developmentsinclude targeted drug delivery, nano-sensors in packaging to monitorcontent, stain and wrinkle resistant cloth, micro-batteries andultra-capacitors. Already established uses include self-cleaning glass,protective coatings on sunglasses, sunscreens and cosmetics. Governmentreports predict that nanotechnology markets are estimated to reach avalue of trillions of dollars within the decade.

However, the health and environmental risks posed by nanomaterials ormore particularly, free nanoparticles are still not clearly understood.Although most nanomaterials are generally well integrated into finalconsumer or business products and thus can do relatively little damage,released nanoparticles, which can for instance appear during production,over the product life cycle or during end-of-life disposal, or duringremanufacturing or recycling, could be a problem. For example, there isa risk that they could be inhaled or ingested or migrate in through theskin and then cause damage.

There is a gap between the scope for innovating new uses fornanomaterials and the corresponding understanding of the consequentrisks to humans and the environment. Additionally, the impact of anexposure to humans may not be directly evident until many years later,leading to similar problems as were experienced with asbestos andbenzene (an aromatic component of gasoline which has been found to causecancer).

By identifying and understanding these risks, insurance companies canoffer competent risk management support to their clients who are activein this sector. Thus, a need exists in the art for a system to identifyand evaluate the risk posed by nanomaterials.

SUMMARY OF THE INVENTION

Accordingly, in one aspect the invention relates to a system fordetermining the level of risk posed by nanomaterials to an entity inwhich a risk score is calculated and subsequently used to evaluate theinsurability of the entity. The system includes a memory, where acomputerized model is stored, and a processor configured to retrievefrom memory data related to nanomaterials associated with the entity,calculate the risk score using the computerized model and the retrieveddata, evaluate the insurability of the entity responsive at least inpart to the risk score, and output the results of the evaluation processas an offer or denial for insurance.

In one embodiment, the retrieved data was obtained from a questionnairecompleted by the entity, an outside data source such as a privateresearch institute or government agency, and a monitoring device locatedat a facility operated by the entity. The retrieved data may includephysical and chemical characteristics of the nanomaterials of interest,particularly the size, shape, volume, concentration, stability,toxicity, and/or the tendency for aggregation of the nanomaterials. Thesystem may derive values for a group of variables corresponding torisk-related characteristics of the nanomaterials from the obtaineddata, and base the risk score calculations at least in part on thevariable values. Such variables may include quantitative representationsof the risks posed by the above mentioned physical and chemicalcharacteristics, the phase of the nanomaterials in question, theend-of-life considerations related to the nanomaterial, the level ofpublic concern with regard to the nanotechnology or the entity, and thelevel of regulation governing the activities of the entity. Thecomputerized model may calculate the risk score by taking a weighted sumof the variable values. The computerized model may be configured tochange dynamically over time.

The risk score may be used at least in part in evaluating theinsurability of the entity. The output of the evaluation process may bean offer for insurance and the associated premium or a denial ofinsurance. The system may alter the provisions of the insurance policyin response to new data obtained from the on-site monitoring devicesduring the term of the policy. In one embodiment, the risk score may beused in the insurability evaluation process to modify a premiumpreviously calculated based on traditional risk factors. Insurance maybe denied if the risk score is too high. A moderate risk score may haveno effect on the previously calculated premium, and a lower risk scoremay cause a reduction in the premium value.

In another aspect, the invention relates to a method for determining thelevel of risk posed by nanomaterials to an entity. The method comprisesobtaining data related to nanomaterials associated with the entity,calculating a risk score based on the obtained data and a computerizedmodel, evaluating the insurability of the entity responsive at least inpart to the calculated risk score, and outputting the results of theevaluation process as an offer or denial for insurance.

In one embodiment, the data is obtained from a questionnaire completedby the entity, an outside data source such as a private researchinstitute or government agency, and a monitoring device located at afacility operated by the entity. The obtained data may comprise physicaland chemical characteristics of the nanomaterials of interest,particularly the size, shape, volume, concentration, stability,toxicity, and tendency for aggregation of the nanomaterials. Values fora group of variables corresponding to risk-related characteristics ofthe nanomaterials may be derived from the obtained data, and the riskscore calculations may be based at least in part on the variable values.Such variables may include quantitative representations of the risksposed by the above mentioned physical and chemical characteristics, thephase of the nanomaterials in question, the end-of-life conditions, thelevel of public concern with regard to the nanotechnology or the entity,and the level of regulation governing the activities of the entity. Thecomputerized model may calculate the risk score by taking a weighted sumof the variable values. The computerized model may be configured tochange dynamically over time.

The risk score may be used at least in part in evaluating theinsurability of the entity. The output of the evaluation process may bean offer for insurance and the associated premium or a denial ofinsurance. The provisions of the insurance policy may be altered inresponse to new data obtained from the on-site monitoring devices duringthe term of the policy. In one embodiment, the risk score may be used inthe insurability evaluation process to modify a premium previouslycalculated based on traditional risk factors. The insurance policy maybe denied if the risk score is too high. A moderate risk score may haveno effect on the previously calculated premium, and a lower risk scoremay cause a reduction in the premium value. The insurance policy maythen be issued or renewed.

In another aspect, the invention relates to a processor-readable mediumencoded with machine-readable instructions for carrying out the methoddescribed above.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of a system suitable for carrying out a methodof nanomaterial risk evaluation, according to an illustrative embodimentof the invention;

FIG. 2 is a block diagram of a computer network system that may be usedin an embodiment of the invention;

FIG. 3 is a block diagram of a first nanomaterial risk evaluationscenario, according to an illustrative embodiment of the invention;

FIG. 4 is a table showing how risk scores may be derived, according toan illustrative embodiment of the invention;

FIG. 5 is an illustrative user interface suitable for carrying outaspects of the invention, according to an illustrative embodiment of theinvention; and

FIG. 6 is a flowchart of a method of nanomaterial risk evaluation,according to an illustrative embodiment of the invention.

DETAILED DESCRIPTION

FIG. 1 shows a block diagram of a system 100 for quantitativelyevaluating risk associated with nanomaterials and underwriting aninsurance policy based on that risk, according to an illustrativeembodiment of the invention. In system 100, insurance company 120 isidentifying and evaluating the risk posed by nanotechnology to twocustomers 108. Although there are two customers shown, it is understoodthat system 100 may be used for any number of customers. System 100 alsoincludes a communications network 106, a data monitoring service 112, anoutside expert service 117, an insurance agent terminal 107, and aninsurance company computing system 101.

Customers 108 may be companies or individuals that produce or sellnanomaterial-containing products, that own facilities containingnanomaterials, or that are involved in nanotechnology in another manner.Insurance company 120 obtains nanomaterial-related information fromcustomers 108 through customer terminals 111. Customer terminals 111 maybe any general purpose computer or other computing device (e.g., apersonal digital assistant or cell phone) having suitable software forinteracting with communications network 106. Communications network 106may be any appropriate wireless or wired communication network such asthe internet. Customer terminals 111 may also have special-purposesoftware and/or a user interface that facilitates the entering andtransmission of nanomaterial data.

If customers 108 own or operate facilities where nanomaterials arepresent, those facilities may house sensors 110 that are part of anon-site monitoring system. Sensors 110 may be provided by customer 108,insurance company 120 or an unrelated third party not shown in thefigure. Sensors 110 may include differential mobility analyzers thatdetect nanoparticles in the air by measuring particle drift velocitiesunder the action of an electric field, and condensation nucleus counters(CPC or CNC) that optically detect particles by activating them todroplets in a supersaturated atmosphere of alcohol. For example, afactory where nanoparticle-containing ink is manufactured may have suchsensors installed as part of a hazard monitoring system. Sensors 110 mayalso include traditional sensors, such as thermostats and humiditymeters, that measure properties that may affect the states ofnanomaterials. In another scenario, a warehouse or retail store thatreceives, processes, or stores nanomaterial-containing products may havesensors 110 such as RFID scanners to track the merchandise. Theinsurance company 120 or data monitoring system 112 may be grantedaccess to the inventory management system operated by the customer totrack the volume of nanomaterial and/or nanomaterial-containing productsthe customer has at a given facility. This information can be used toevaluate exposure levels to employees working at the facility as well asto gauge any environmental risks that an incident at the facility maypose. Furthermore, the insurance company 120 can obtain information fromthe inventory management system indicating where nanomaterials aredelivered or shipped to, to evaluate downstream risks of processing,shipping, or selling nanomaterials.

Insurance company 120 may obtain nanomaterial data from sensors 110 inreal-time or in discrete time intervals. Data from sensors 110 may firstbe collected and aggregated and/or distilled by data monitoring service112 before it is sent to insurance company 120. The data may betransmitted via any appropriate wireless or wired communications network106.

Insurance company 120 may also obtain nanomaterial-related data fromoutside experts 117. Outside experts 117 may make available to theinsurance company 120 databases of nanomaterial information or mayperform additional analysis on data obtained from sensors 110 or othersources. Outside experts 117 may include government agencies,environmental groups, or any other appropriate authority or entity.

Insurance company 120 may have a computer system 101 that includesapplication servers 102, load balancing proxy servers 103, memory 104,business logic computer 122, and internal insurance company terminals105 to perform risk evaluation and underwriting. Employees of theinsurance company 120 and other authorized personnel may use insurancecompany terminal 105 to access the insurance company computer system101. Insurance company terminal 105 may be any type of computing devicethat is configured to communicate with other computer systems. Companyterminals 105 may be connected directly to application server 102, ormay access an application server 102 via the load balancing proxyservers 103. Company terminals 105 may connect to load balancing proxyservers 103 via a local area network, a private data link, or via theinternet. Customer terminals 111 access the application servers 102 viathe load balancing proxy servers 103 over the communications network106. The business logic computer 122 is connected to the memory 104 andapplication servers 102 over a local area network 121. In addition,other network infrastructure, including, for example a firewall, backupservers, and back up data stores, may also be included in the system101, without departing from the scope of the invention. Communicationsover the local area network 121 and/or over the Internet, in oneimplementation, may be encrypted. In addition, such communications,whether encrypted or not, may also be digitally signed forauthenticating the source of the communications. The computer system 101may also include a certificate authority to authenticate one or more ofthe communications using public key infrastructure.

In general, the company terminals 105 and the customer terminals 111 canbe any general purpose computer or other computing device (e.g., apersonal digital assistant or cell phone) having suitable software forinteracting with software operating on the application servers 102. Onesuitable device is described further in relation to FIG. 2. In oneimplementation, the terminal software includes a web browser. In such animplementation, upon entering the URL of a corresponding insurancecompany website, one of the load balancing proxy servers 103 assigns anapplication server 102 to interact with the terminal 105 or 111. Theload balancing proxy server 103 selects an application server 102 basedon the current load of the available application servers 102. Theassigned application server 102 then generates a series of web pages forpresentation via the web browser of the terminal 105 or 111 for reviewof and interaction with the user of the terminal 105 or 111. Oneillustrative web page suitable for presentation to a user in a terminal105 or 111 to obtain information about nanomaterials handled by acustomer is a questionnaire, depicted in FIG. 5 and described furtherbelow.

Based on the nanomaterial data collected from the various sourcesdescribed above, business logic computer 122 performs risk evaluationand policy underwriting. Business logic computer 122 may be implementedbased on the computer network system architecture shown in FIG. 2.Business logic computer 122 may have data storage capabilities of itsown, or may access memory 104 for such purposes. In one implementation,memory 104 is a data warehouse utilized by the insurance company 120.The data warehouse is the main electronic depository of the insurancecompany's current and historical data. The data warehouse includes oneor more interrelated databases that store information relevant toinsurance data analysis. The interrelated databases store bothstructured and unstructured data. In one implementation, one or more ofthe interrelated databases store electronic copies of insurance forms,either in an image format or a text-searchable format keyed to acustomer or claim. Other databases in the interrelated databases storedata, for example, in a relational database, in various data fieldskeyed to various identifiers, such as, without limitation, customer,data source, geography, or business identifier (such as StandardIndustry Classification Code). The information stored in the datawarehouse 102 is obtained through communications with customers, agents,vendors, sensors, and third party data providers and investigators. Inparticular, the data warehouse is configured to store data aboutcustomer and non-customer nanomaterial use and exposure, as well asrelated loss information, if any. Preferably, the computations requiredfor risk evaluation and underwriting are primarily carried out bybusiness logic computer 122, in order to free up the other resources forother tasks. The processes performed by business logic computer 122 inan illustrative embodiment of the invention are described below inrelation to FIG. 3.

In one implementation, software operating on the application servers 102act merely as presentation and data extraction and conversion servers.All substantive business logic, including underwriting and pricingdeterminations, is carried out on the business logic computer 122. Inthis implementation, the application servers 102 obtain data from thedatabase 104 and the business logic computer and incorporate that datainto web pages (or other graphical user interface formats). These webpages are then communicated by the application servers 102 through theload balancing proxy servers 103 to terminals 111 and 107 forpresentation. Upon receiving input from the terminals 111 or 107, theapplication server 102 translates the input into a form suitable forprocessing by the business logic computer and for storage by thedatabase 104. In this implementation, the application servers can beoperated by third parties, for example, independent agents, who can addtheir own branding to the web pages or add other customized presentationdata. In the alternative, at least some of the business logic is alsocarried out by the application servers 102.

In another implementation, the application servers 102 are softwaremodules operating on one or more computers. One of the computers onwhich the application servers 102 are operating may also serve as thebusiness logic computer 122 and/or as a load balancing proxy server 103.

A separate insurance agency or individual insurance agent may also haveaccess to the insurance company system 101. This may be accomplished viainsurance agent terminal 107. Insurance agent terminal 107 may be anyappropriate type of computing device that is configured to interact withcommunications network 106, such as the devices described in relation toFIG. 2.

In other implementations, the software operating on the terminals 105,111, and 107, includes a thin or thick client application in additionto, or instead of web browser. The thin or thick client applicationinterfaces with a corresponding server application operating on theapplication server 102.

FIG. 2 shows a block diagram of a computer network system that may beused by the insurance company 120 to process nanomaterial data, evaluaterisk, and underwrite an insurance policy. Computer network server 201comprises at least one central processing unit (CPU) 202, at least oneread-only memory (ROM) 203, at least one communication port or hub 204,at least one random access memory (RAM) 205, and one or more databasesor data storage devices 206. All of these later elements are incommunication with the CPU 202 to facilitate the operation of thenetwork server 201. The network server 201 may be configured in manydifferent ways. For example, network server 201 may be a conventionalstandalone server computer or alternatively, the function of server maybe distributed across multiple computing systems and architectures.

Network server 201 may also be configured in a distributed architecture,wherein databases and processors are housed in separate units orlocations. Some such servers perform primary processing functions andcontain at a minimum, a RAM 205, a ROM 203, and a general controller orprocessor 202. In such an embodiment, each of these servers is attachedto a communications hub or port 204 that serves as a primarycommunication link with other servers 207, client or user computers 208and other related devices 209. The communications hub or port 204 mayhave minimal processing capability itself, serving primarily as acommunications router. A variety of communications protocols may be partof the system, including but not limited to: Ethernet, SAP, SAS.™, ATP,Bluetooth™, GSM and TCP/IP.

The CPU 202 comprises a processor, such as one or more conventionalmicroprocessors and one or more supplementary co-processors such as mathco-processors. The CPU 202 is in communication with the communicationport 204 through which the CPU 202 communicates with other devices suchas other servers 207, user terminals 208, or devices 209. Thecommunication port 204 may include multiple communication channels forsimultaneous communication with, for example, other processors, serversor client terminals. Devices in communication with each other need notbe continually transmitting to each other. On the contrary, such devicesneed only transmit to each other as necessary, may actually refrain fromexchanging data most of the time, and may require several steps to beperformed to establish a communication link between the devices.

The CPU 202 is also in communication with the data storage device 206.The data storage device 206 may comprise an appropriate combination ofmagnetic, optical and/or semiconductor memory, and may include, forexample, RAM, ROM, flash drive, an optical disc such as a compact discand/or a hard disk or drive. The CPU 202 and the data storage device 206each may be, for example, located entirely within a single computer orother computing device; or connected to each other by a communicationmedium, such as a USB port, serial port cable, a coaxial cable, aEthernet type cable, a telephone line, a radio frequency transceiver orother similar wireless or wired medium or combination of the foregoing.For example, the CPU 202 may be connected to the data storage device 206via the communication port 204.

The data storage device 206 may store, for example, (i) a program (e.g.,computer program code and/or a computer program product) adapted todirect the CPU 202 in accordance with the present invention, andparticularly in accordance with the processes described in detailhereinafter with regard to the CPU 202; (ii) databases adapted to storeinformation that may be utilized to store information required by theprogram. Suitable databases include an insurance subscriber database anda nanomaterial database, and the databases include multiple records,each record including fields specific to the present invention such aspremiums, locations, payouts, claims, nanomaterial exposure levels,nanomaterial characteristics, nanomaterial regulation levels, publicperception levels, etc.

The program may be stored, for example, in a compressed, an uncompiledand/or an encrypted format, and may include computer program code. Theinstructions of the program may be read into a main memory of theprocessor from a computer-readable medium other than the data storagedevice 206, such as from a ROM 203 or from a RAM 205. While execution ofsequences of instructions in the program causes the processor 202 toperform the process steps described herein, hard-wired circuitry may beused in place of, or in combination with, software instructions forimplementation of the processes of the present invention. Thus,embodiments of the present invention are not limited to any specificcombination of hardware and software.

Suitable computer program code may be provided for performing numerousfunctions such as processing data associated with nanomaterials, whereprocessing data may include aggregating raw data according to aparticular formula. Computer program code may also be provided forcalculating a risk score from the nanomaterial data, where the riskscore is calculated according to a model that is stored as program codeor in some other manner. Furthermore, computer program code may beprovided for underwriting or modifying an insurance policy based on arisk score, and outputting the result to a display or in some othermanner. The program also may include program elements such as anoperating system, a database management system and “device drivers” thatallow the processor to interface with computer peripheral devices (e.g.,a video display, a keyboard, a computer mouse, etc.).

The term “computer-readable medium” as used herein refers to any mediumthat provides or participates in providing instructions to the processorof the computing device (or any other processor of a device describedherein) for execution. Such a medium may take many forms, including butnot limited to, non-volatile media and volatile media. Non-volatilemedia include, for example, optical, magnetic, or opto-magnetic disks,such as memory. Volatile media include dynamic random access memory(DRAM), which typically constitutes the main memory. Common forms ofcomputer-readable media include, for example, a floppy disk, a flexibledisk, hard disk, magnetic tape, any other magnetic medium, a CD-ROM,DVD, any other optical medium, punch cards, paper tape, any otherphysical medium with patterns of holes, a RAM, a PROM, an EPROM orEEPROM (electronically erasable programmable read-only memory), aFLASH-EEPROM, any other memory chip or cartridge, or any other mediumfrom which a computer can read.

Various forms of computer readable media may be involved in carrying oneor more sequences of one or more instructions to the processor 202 (orany other processor of a device described herein) for execution. Forexample, the instructions may initially be borne on a magnetic disk of aremote computer 208. The remote computer 208 can load the instructionsinto its dynamic memory and send the instructions over an Ethernetconnection, cable line, or even telephone line using a modem. Acommunications device 204 local to a computing device (or, e.g., aserver) can receive the data on the respective communications line andplace the data on a system bus for the processor. The system bus carriesthe data to main memory, from which the processor retrieves and executesthe instructions. The instructions received by main memory mayoptionally be stored in memory either before or after execution by theprocessor. In addition, instructions may be received via a communicationport as electrical, electromagnetic or optical signals, which areexemplary forms of wireless communications or data streams that carryvarious types of information.

As previously discussed with reference to FIG. 1, servers 102 may alsointeract and/or control one or more user devices or terminals such as,e.g., terminals 105, 107, and 111. The terminals may include any one ora combination of a personal computer, a laptop, a personal digitalassistant, a mouse, a keyboard, a computer display, a touch screen, LCD,voice recognition software, or other generally represented byinput/output devices required to implement the above functionality.

FIG. 3 shows a schematic diagram of an illustrative nanomaterial riskevaluation scenario where buildings 301-303 are insured by insurancecompany 311. Insured buildings 301-303 may be owned by, operated by, orin some other manner associated with one or multiple customers 313. Forexemplary purposes, insured building 301 is a research facility thatworks with nanomaterials. For example, nanomaterial research may beconducted in research facility 301. Building 302 is a factory whereproducts containing nanomaterials are produced. Factory 302 may be, forexample, an ink or paint factory. Building 303 is a warehouse wherenanomaterial-containing products are stored. Other types of buildingsthat are not shown, such as retail buildings, office buildings,apartment buildings, and homes may also be insured according toprinciples described herein. Risks associated with insured buildings301-303 include health risks to building occupants and employees of theentity; product liability; general liability; and possible environmentaldamage caused by nanomaterials due, for example, to building operations,in the event of an accident or due to product disposal at the end of aproduct's life cycle.

Nanomaterial sensors 304-306 are located at their respective buildings.Each sensor 304-306 may represent one or multiple sensors. Sensors304-306 may, for example, include differential mobility analyzers, CNCs,RFID scanners, thermostats, and humidity meters, as discussed above inrelation to FIG. 1. Data from sensors 304-306 are transmitted to datamonitoring service 307 in real-time, once a day, or at some otherdiscrete time interval. The data may be transmitted via any appropriatewireless or wired communications network 310. Data monitoring service307 aggregates the data from the various sensors and provides it toinsurance company 311 as a collection. Data monitoring service may also,or in the alternative, process the data to provide a distillation of thedata. This may occur in real-time or at a discrete time interval such asonce a day. Data monitoring service 307 may also perform preliminaryanalysis of the data and provide a report of the results to insurancecompany 311. Data monitoring service 307 may be part of customer'son-site monitoring system, an off-site facility operated by customer313, or a facility operated by a third party that is hired by thecustomer 313 or insurance company 311. Data monitoring service 307 mayuse supervisory control and data acquisition (SCADA) and analysissoftware to collect, record, store, present, and analyze data collectedfrom sensors 304-306 and other digital devices. Alternatively, data fromsensors 304-306 may be sent directly to insurance company 311 withoututilizing data monitoring service 307.

Remediation company 308 may also receive raw data from sensors 304-306and/or aggregated or distilled data from data monitoring service 307.Remediation company 308 may be mobilized to contain a hazard or threatthat is detected at insured buildings 301-303.

Insurance company 311 may also receive nanomaterial information fromoutside expert 312. Outside expert 312 may be an organization thatprovides expert knowledge on nanomaterials or a database that containsexpert knowledge on nanomaterials. Outside expert 312 may includeindependent research groups, government regulatory agencies, or otherorganizations with the appropriate expertise. The data provided byoutside expert 312 may be used to supplement data from sensors 304-306,or may be used in place of absent or inconclusive sensor data. Outsideexpert 312 may provide data accumulated from prior experiences withnanomaterials or may provide theoretical data and predicted effects. Thecommunications network 310 used to transmit such data may be anysuitable wireless or wired communications network.

Customer 313 may also provide data to insurance company 311 directly.The data may be provided in response to solicitation by insurancecompany 311 or it may be provided voluntarily by the customer. Insurancecompany 311 may solicit data by providing customer 313 with aquestionnaire. The questionnaire may be provided electronically to anyappropriate computing device accessible by customer 313. Thequestionnaire may also be provided on paper to the customer. Thecustomer's reply may then be manually entered into insurance company'scomputing system. A portion of an illustrative questionnaire is shown inFIG. 5.

If the data obtained from the sources described above is insufficientfor performing risk evaluation, insurance company 311 may perform anon-site loss control investigation where a team from insurance company311 or a third party entity goes to insured buildings 301-303 to performrisk evaluation. This process may include taking soil and water samplesfrom the land around buildings 301-303, air samples from insidebuildings 301-303, samples of any nanomaterial-containing products.These samples may then be subjected to in-depth analysis to determinecertain properties of the present nanomaterials. Examples of suchanalysis include imaging, acoustic spectrometry, and particle sizeanalysis. Techniques for performing particle size analysis include sizesieving, gravity and centrifugal sedimentation, and capillaryhydrodynamic and sedimentation field flow fractionation. Recent productdevelopments from Malvern Instruments and Beckman Coulter both utilizeimage analysis to determine particle size and shape. Beckman's RapidVUEimage analyzer uses video imaging to create a digital picture of theparticles in the 20-2,000 micron range. Malvem's Sysmex FPIA-2100analyzes particle shape and size with a camera and microscope to measure0.7-160 micron sized particles. Other types of analysis tools includeMalvern's Ultrasizer SV, which employs ultrasonic spectroscopy todetermine particle size and shape. The data from the loss controlinvestigation may be combined with the data obtained from other sourcesand used in performing risk evaluation. It is contemplated that suchadditional risk evaluation procedures such as the particle size analysismay be automated and configured to provide additional data collectionautomatically without requiring a separate on-site visit throughautomated analysis components that can communicate with insurancecompany 311.

After acquiring nanomaterial-related data from the various sourcesdescribed above, insurance company 311 uses a computing system such asbusiness logic processor 122 to process the received data and calculatea nanomaterial risk score for each customer 313 or each individualinsured facility 301-303. The calculations may be performed using aspecial-purpose computer model implemented in hardware or software aspart of the insurance company's computing system. In one embodiment ofthe invention, the insurance company's computing system may be system101 of FIG. 1.

The types of data insurance company 311 uses to calculate the risk scoreinclude physical characteristics of the nanomaterial, such as size,shape, volume, density, viscosity, concentration, and specific gravity,and chemical characteristics such as toxicity, reactivity, acidity,alkalinity, solubility, and combustibility. Some characteristics thatmay be used may be a combination of chemical and physical properties,such as nanoparticles' tendency for aggregation and their colloidalproperties. Other data that may be taken into account include handlingrisk, level of encasement, material phase, end-of-life concerns, type ofinsurance coverage, regulatory regime, and public perception. Handlingrisk describes the likelihood that nanomaterials in a product may harmpeople that are handling it. People who might handle such productsinclude the employees of the insured customer 313 and the consumers whobuy the product. The encasement level of a nanomaterial refers to howenclosed the nanomaterial is in a product. For example, loosenanoparticles found in paint are less encased than nanomaterials withinthe structure of a baseball bat. The material phase of a nanomaterialdescribes the form it is in while it is associated with insured customer313. Nanomaterials may be used or handled in an unprocessed form, asnano-intermediates, or as nano-enabled products. Nanomaterials that arealready incorporated into a product generally pose less risk thannanomaterials in an unprocessed form, which may be found in researchbuilding 301 or factory 302, for example. End-of-life concerns refer tothe hazards posed by the disposal or break-down ofnanomaterial-containing substances. For example, the incineration ofcertain types of nanomaterials may pose an environmental hazard. Thetypes of data that are considered and the weight put on each incalculating the risk score may vary depending on the type of insurancecoverage. For example, handling risk may be particularly important inunderwriting a worker's compensation policy. Toxicity may be mostimportant in products liability coverage. The existence of strongregulatory regimes may lessen the risks posed by nanomaterials byproviding oversight and decreasing the probability of accidents.Finally, the public's perception of a particular nanotechnology orcompany may be taken into account when calculating the risk score. Whilepublic perception is not related to the inherent dangers of a particularnanotechnology, a negative public perception of either the technology orthe insured company 313 may increase the likelihood of lawsuits in theevent of a loss, regardless of the underlying merits of the claimsasserted in such lawsuits.

In calculating the risk score from the collected data, insurance company311 may first calculate values for a group of intermediate variablesthat capture the most important information in the data. For example,“the presence of nanomaterials” may be an intermediate variable whosevalue is derived from the toxicity, volume, level of encasement, andhandling risk data of the nanomaterial. However, an intermediatevariable may also correspond to only one type of data, such as atoxicity intermediate variable.

Because nanotechnology is such a cutting-edge field, it is sometimesdifficult to obtain exact quantitative measurements of certain data andintermediate variables. For example, the toxicity of a particularnanomaterial may be unknown or known only to a certain degree ofaccuracy. Furthermore, certain data types are qualitative in nature,such as public perception. Since the risk score is a number and iscomputed quantitatively, all the data and/or intermediate variables areconverted to numbers.

FIG. 4 is a table 400 and narrative key 401 that demonstrates how dataand/or intermediate variables may be represented, according to anillustrative embodiment of the invention. In this scenario, exactnumbers for the variables 402 are not known. Instead, only theapproximate range (i.e., low/medium/high) is known. Narrative key 401demonstrates how qualitative data and data without numerical precisionmay be converted into numbers for the purpose of calculating a riskscore. For example, nanomaterial 1 has moderate handling risk, which isa qualitative concept. The handling risk variable is thus assigned to 2,as suggested by the narrative key 401. In another example, there is aquantity of nanomaterial 2 in a particular insured building thatmeasures in the kilogram range. It is unknown exactly how many kilogramsare present. As suggested by the narrative key 401, the volume/quantityvariable for nanomaterial 2 is equal to 3. The numerical values of allthe variables may then be combined per a computerized model to generatethe risk score 403. One method of combining the variables 401 is tocompute a weighted sum, where the weights are determined retrospectivelyusing e.g., regression analysis from a database of nanomaterial data.The database may be part of insurance company's computing system, e.g.memory 104, or may be provided by an outside source. The computerizedmodel scales the weighted sum to confine the risk score 403 within adesired range. In table 400, the risk scores 403 were scaled to staybetween 200 and 900. The numbers, ranges, and variables shown in table400 are merely illustrative; it is understood that the numbers, ranges,and variables may be different in another application. Furthermore, itis understood that as more data about nanomaterials is obtained, themodel may be modified to incorporate more classes per variable and tohave weights adjusted accordingly.

Referring back to FIG. 3, insurance company 311 may use the computedrisk score 403 to underwrite an insurance policy for the customer 313 orfor a particular insured building 301-303. The underwriting may beperformed by an automatic system implemented in insurance company'scomputing system, such as business logic computer 122 in FIG. 1. In analternative embodiment, the underwriting may include a human underwriterinteracting with the computing system. For example, the humanunderwriter may determine qualitative evaluations of one or more of thevariables described above. In addition, the human underwriter mayevaluate the output of the computing system for making a finalinsurability or rating decision. The results of the underwriting may bepresented electronically to the customer 313, or may be given toindependent or affiliated insurance agents 309 to present to thecustomer 313. The output of the underwriting may be presented in anysuitable manner, including on an electronic display or on paper. Theoutput may also be electronically directed to a printer for printing orto an email application. The output may be a denial for insurance, arating of insurability, or an offer for insurance or renewal including apremium determined based on the underwriting.

An insurance application may be issued, modified, or rejected dependingon the risk score 403 of customer 313. The application may be for a newor renewal policy. The policy may be updated in real-time or at acertain discrete time intervals as new data from customer 313 or sensors304-306 arrive.

FIG. 5 is an illustrative graphical user interface, in this instance, aweb page 500 questionnaire, suitable for obtaining nanomaterial relatedinformation from customers, according to an illustrative embodiment ofthe invention. The web page 500 includes a series of questions relatedto nanomaterials. Customers utilize web page 500 to enter anyinformation they have about the nanomaterials that they are associatedwith. The data that they enter may supplement data obtained from on-sitesensors, on-site investigations, and outside sources, as previouslydiscussed in relation to FIG. 3.

Referring back to FIG. 1, based on the information provided via the webpage and data obtained from other sources, the business logic computer122 carries out an underwriting and pricing process through which thecomputer system 101 determines whether to offer new coverage to acustomer, and if so at what price. For existing policies adjusted by auser via the system 100, the business logic computer 122 determineswhether the adjustments merit a change in insurance premium. Theinsurance company may grant a discount to a customer for having a party,other than the insurance company, monitor the nanomaterial riskassociated with the customer. The discount may vary based on the typesof nanomaterial present, how the nanomaterials are used, and otherfactors as discussed previously in relation to FIG. 3. The exact valueof the discount may be determined according to a set of pricing rules,or by processing a set of intermediate variables with a statisticalpredicative model. In alternative embodiments, discounts, if any, aredetermined based on sensor data received, either in raw, aggregated, ordistilled form. For example, if a customer manufactures a productincluding nanomaterials that tend to have a high risk of thenanomaterials becoming airborne, sensor data indicating lower thanexpected particle levels in the air may warrant a premium discount.Similarly, output from an inventory management system demonstrating thatraw materials are kept in inventory for a minimal amount of time priorto encapsulation would warrant a discount relative to a company carryingout the same process that maintains substantial stockpiles of rawnanomaterial. Additional discounts may be provided to the customer byhaving the customer or other third party validate that the actualsensors themselves are being maintained and are providing accurate dataregarding the nanomaterials.

The output of the underwriting and pricing processes is then output tothe customer terminals 111 or insurance agent terminals 107. In oneimplementation, for requests for new policies and renewals, the outputtakes the form of a web-based determination of insurability or an actualoffer for insurance including a corresponding premium amount, an optionto bind the policy, and functionality to accept payment from thecustomer for the new policy. For policy adjustments, the output takesthe form of a web page displaying an updated premium. In either case,the resulting web page, in one implementation, includes suggestions asto how a user can obtain further discounts. The web page may providespecific recommendations on nano-sensor devices such as differentialmobility analyzers, CNCs, RFID scanners, thermostats, and humiditymeters that are most appropriate for the types of nanomaterials at hand,and their corresponding discounts to the provided premium. The web pagemay also provide safety and hazard containment suggestions, such asinstalling negative-pressure isolation systems and air filters, andimproving accessibility to masks and environmental suits.

FIG. 6 shows a flowchart of a method of nanomaterial risk evaluation600, according to an illustrative embodiment of the invention. Theentity being insured may be an individual or an organization thatproduces, sells, researches, or handles in some other way nanomaterials.The entity may also own or operate facilities where nanomaterials arepresent. At step 603, the insurance company obtainsnanomaterial-specific data related to the customer from a variety ofsources. These'sources may include client questionnaires, sensors, andmonitors located in or remote from customer-operated facilities, outsideexperts, or other external sources of information. Outside experts mayinclude private research services, government agencies, or databases ofcollected nanomaterial information. The data may be collected by theinsurance company in real-time, or at discrete time intervals throughoutthe term of the insurance policy.

The data may be in a raw form, or may be preprocessed by a datamonitoring service or outside expert. The obtained data may includephysical characteristics of the nanomaterial, such as size, shape,volume, density, viscosity, concentration, and specific gravity, orchemical characteristics such as the toxicity, reactivity, acidity,alkalinity, solubility, and combustibility, as described previously inrelation to FIG. 3.

Optionally at step 604, values for intermediate variables thatcharacterize nanomaterial risk are derived from the collected data.Examples of intermediate variables include toxicity and volume of thenanomaterials, the level of encasement of nanomaterial in products, thelevel of risk in how the nanomaterials are handled, and the stage ofproduction that nanomaterial-containing products are in. Intermediatevariables may also include the level of risk associated with theend-of-life conditions, the level of regulatory regime present, and ameasure of the public's perception of the particular nanotechnologiesbeing used, as discussed previously.

At step 605, the intermediate variable values from step 604 may be usedto calculate a total risk score associated with the customer or insuredfacility. In one embodiment, the risk score is calculated by taking theweighted sum of the intermediate variable values from step 604, wherethe weights are determined retrospectively e.g., using regressionanalysis from a database of nanomaterial data. Alternatively, the totalrisk score may be computed directly from the data collected at step 603.

Depending on the value of the computed risk score, the risk score may bedetermined to be unacceptable (step 606 a), acceptable (step 606 b), ordesirable (606 c). This determination may be done automatically by aninsurance company computing system or program, such as business logiccomputer 122, or may be decided upon by an insurance agent or insurancecompany employee. Although there are only three categories shown in thefigure, the risk score may be characterized into any number ofcategories, or may be considered a continuous real number.

If the risk score is decided to be unacceptable, then the customer maybe denied an insurance policy at step 607 a. If a policy already exists,a renewal may be declined. If the risk score is decided to be acceptableor desirable, appropriate modifications, if any, to premiums based onthe risk score may be determined at step 607 b. The premium may bereduced if the risk score is favorable, or it may be increased if therisk score is unfavorable (though still acceptable). The premium may notbe altered at all if the risk score is moderate or inconclusive.Furthermore, different types of coverage policies, such as generalliability or worker's compensation, may be selectively offered or deniedin response to the risk score. In addition, the premium modifications inone embodiment of the invention may be contingent on the entitysatisfying a condition, such as installing concentration sensors in anentity-operated facility within 30 days.

At step 608, any modifications made in step 607 may be combined withpremium determinations made based on risk factors unrelated tonanomaterials in a separate underwriting process. The final policy maythen be issued at step 609.

If the data collected at step 603 changes during the term of an issuedinsurance policy at step 610, the risk score may be reevaluated based onthe new data. Accordingly, the insurance policy may be modified andreissued or even canceled. Reevaluation of risk may occur in real-timeas data is collected in real-time, or may occur at discrete timeintervals throughout the term of the policy. Steps 603-609 may thus berepeated many times during the term of an insurance policy.

1. A system for determining a level of risk posed by a nanomaterial toan entity, the system comprising: a memory; a computerized model storedon the memory; and a processor configured to: retrieve from memory datarelated to the nanomaterial, the retrieved data including datarepresentative of the size, shape, stability, and tendency foraggregation of the nanomaterial; calculate, using the computerizedmodel, an insurance nanomaterial risk score that is indicative of thelevel of health and environmental risk posed by the nanomaterial to theentity based on the retrieved data, wherein the insurance nanomaterialrisk score is calculated based at least in part on a quantitativerepresentation of the health and environmental risks posed by thenanomaterial based on the size, shape, stability, and tendency foraggregation of the nanomaterial indicated by the retrieved data;evaluate the insurability of the entity responsive at least in part tothe calculated insurance nanomaterial risk score; and output the resultsof the evaluation process as an insurance evaluation of the entity. 2.The system of claim 1, wherein the retrieved data was obtained from aquestionnaire completed by the entity, an outside data source, and amonitoring device located at an entity's facility.
 3. The system ofclaim 1, wherein the retrieved data further includes data representativeof the volume, concentration, and toxicity of the nanomaterial.
 4. Thesystem of claim 1, wherein the processor is configured to derive valuesfor a group of variables corresponding to health and environmentalrisk-related characteristics of the nanomaterial, and wherein theprocessor is configured to calculate the insurance nanomaterial riskscore at least in part based on the values derived for the group ofvariables.
 5. The system of claim 4, wherein the values for the group ofvariables comprise a quantitative representation of the health andenvironmental risk posed by the nanomaterial based on the size, shape,stability, and tendency for aggregation of the nanomaterial indicated bythe retrieved data.
 6. The system of claim 5, wherein the processor isconfigured to derive the quantitative representation at least in partbased on the toxicity of the nanomaterial handled by the entity.
 7. Thesystem of claim 4, wherein the values for the group of variablescomprise a quantitative value assigned to a phase variable indicatingthe phase the nanomaterial is in when handled by the entity, wherein onevalue is assigned to the phase variable if the nanomaterial is handledby the entity in an unprocessed form, a second value is assigned to thephase variable if the nanomaterial is handled by the entity as anintermediate product, and a third value is assigned to the phasevariable if the nanomaterial is handled by the entity as an end product.8. The system of claim 4, wherein the values for the group of variablescomprise a quantitative representation of the risk posed by anend-of-life condition of the nanomaterial.
 9. The system of claim 4,wherein the values for the group of variables comprise a quantitativeindication of a level of public concern associated with the nanomaterialor the entity.
 10. The system of claim 4, wherein the values for thegroup of variables comprise a quantitative representation of aregulatory regime governing the activities of the entity.
 11. The systemof claim 4, wherein the processor is configured to calculate theinsurance nanomaterial risk score using the computerized model by takinga weighted sum of the values of the group of variables.
 12. The systemof claim 2, wherein the retrieved data was obtained from the monitoringdevice during a term of the insurance, and wherein the processor isconfigured to alter a provision of the insurance in response to theobtained data.
 13. The system of claim 1, wherein the computerized modelis configured to change dynamically over time.
 14. The system of claim1, wherein the insurance nanomaterial risk score is used in theevaluation process to modify an insurance premium calculated based ontraditional risk factors.
 15. The system of claim 14, wherein theinsurance is denied if the insurance nanomaterial risk score is high,the insurance premium is unchanged if the insurance nanomaterial riskscore is moderate, and the insurance premium is reduced if the insurancenanomaterial risk score is low.
 16. A method for determining a level ofrisk posed by a nanomaterial to an entity, the method comprising:receiving data related to the nanomaterial, the received data includingdata representative of the size, shape, stability, and tendency foraggregation of the nanomaterial; storing the received data in a databasein communication with a processor; accessing, by the processor, thestored data to calculate using a computerized model an insurancenanomaterial risk score that is indicative of the level of health andenvironmental risk posed by the nanomaterial, wherein the insurancenanomaterial risk score is calculated based at least in part on aquantitative representation of the health and environmental risks posedby the nanomaterial based on the size, shape, stability, and tendencyfor aggregation of the nanomaterial indicated by the received data;evaluating, by the processor, the insurability of the entity responsiveat least in part to the calculated insurance nanomaterial risk score;and electronically outputting, by the processor, the results of theevaluating as an insurance evaluation of the entity.
 17. The method ofclaim 16, wherein receiving data comprises obtaining data from aquestionnaire completed by the entity, an outside data source, and amonitoring device located at an entity-operated facility.
 18. The methodof claim 16, wherein receiving the data comprises obtaining the size,shape, stability, and tendency for aggregation of the nanomaterialindicated by the nanomaterial.
 19. The method of claim 18, wherein thereceived data further include data representative of the volume,concentration, and toxicity of the nanomaterial.
 20. The method of claim16, comprising processing the received data to derive values for a groupof variables corresponding to health and environmental risk-relatedcharacteristics of the nanomaterial, and wherein calculating theinsurance nanomaterial risk score comprises calculating the insurancenanomaterial risk score at least in part based on the values derived forthe group of variables.
 21. The method of claim 20, wherein deriving thevalues for the group of variables comprises deriving a quantitativerepresentation of the health and environmental risk posed by thenanomaterial based on the size, shape, stability, and tendency foraggregation of the nanomaterial indicated by the received data.
 22. Themethod of claim 21, wherein deriving the quantitative representationcomprises deriving the quantitative representation at least in partbased on the toxicity of the nanomaterial handled by the entity.
 23. Themethod of claim 20, wherein deriving the values for the group ofvariables comprises assigning a quantitative value to a phase variableindicating the phase the nanomaterial is in when handled by the entity,wherein one value is assigned to the phase variable if the nanomaterialis handled by the entity in an unprocessed form, a second value isassigned to the phase variable if the nanomaterial is handled by theentity as an intermediate product, and a third value is assigned to thephase variable if the nanomaterial is handled by the entity as an endproduct.
 24. The method of claim 20, wherein deriving the values for thegroup of variables comprises deriving a quantitative representation ofthe risk posed by an end-of-life condition of the nanomaterial.
 25. Themethod of claim 20, wherein deriving the values for the group ofvariables comprises deriving a quantitative indication of a level ofpublic concern associated with the nanomaterial or the entity.
 26. Themethod of claim 20, wherein deriving the values for the group ofvariables comprises deriving a quantitative representation of aregulatory regime governing the activities of the entity.
 27. The methodof claim 20, wherein calculating the insurance nanomaterial risk scorecomprises calculating the insurance nanomaterial risk score by taking aweighted sum of the values of the group of variables.
 28. The method ofclaim 16, comprising issuing the insurance.
 29. The method of claim 17,comprising altering a provision of the insurance in response to the dataobtained from the monitoring device, wherein the data was obtained fromthe monitoring device during a term of the insurance.
 30. The method ofclaim 16, wherein the computerized model is configured to changedynamically over time.
 31. The method of claim 16, wherein the insurancenanomaterial risk score is used in the evaluation process to modify aninsurance premium calculated based on traditional risk factors.
 32. Themethod of claim 31, wherein the insurance is denied if the insurancenanomaterial risk score is high, the insurance premium is unchanged ifthe insurance nanomaterial risk score is moderate, and the insurancepremium is reduced if the insurance nanomaterial risk score is low. 33.A processor-readable medium encoded with machine-readable instructionsfor determining a level of risk posed by a nanomaterial to an entity,the machine-readable instructions comprising: retrieving data related tothe nanomaterial, the retrieved data including data representative ofthe size, shape, stability, and tendency for aggregation of thenanomaterial; calculating, using a computerized model, an insurancenanomaterial risk score that is indicative of the level of health andenvironmental risk posed by the nanomaterial to the entity based on theretrieved data, wherein the insurance nanomaterial risk score iscalculated based at least in part on a quantitative representation ofthe health and environmental risks posed by the nanomaterial based onthe retrieved data; evaluating the insurability of the entity responsiveat least in part to the calculated insurance nanomaterial risk score;and outputting the results of the evaluation process as an insuranceevaluation of the entity.
 34. The processor-readable medium of claim 33,wherein the retrieved data further include data representative of thevolume, concentration, and toxicity of the nanomaterial.
 35. Theprocessor-readable medium of claim 33, wherein the processor isconfigured to derive values for a group of variables corresponding tohealth and environmental risk-related characteristics of thenanomaterial, and wherein the processor is configured to calculate theinsurance nanomaterial risk score at least in part based on the valuesderived for the group of variables.
 36. The processor-readable medium35, wherein the values for the group of variables comprise aquantitative value assigned to a phase variable indicating the phase thenanomaterial is in when handled by the entity, wherein one value isassigned to the phase variable if the nanomaterial is handled by theentity in an unprocessed form, a second value is assigned to the phasevariable if the nanomaterial is handled by the entity as an intermediateproduct, and a third value is assigned to the phase variable if thenanomaterial is handled by the entity as an end product.
 37. Theprocessor-readable medium of claim 35, wherein the values for the groupof variables comprise a quantitative indication of a level of publicconcern associated with the nanomaterial or the entity.
 38. Theprocessor-readable medium of claim 33, wherein the insurancenanomaterial risk score is used in the evaluation process to modify aninsurance evaluation of the entity determined based on traditional riskfactors.
 39. The processor-readable medium of claim 38, wherein themodification of the insurance evaluation comprises a denial of insuranceif the insurance nanomaterial risk score is high, an unchanged insurancepremium if the insurance nanomaterial risk score is moderate, and areduced insurance premium if the insurance nanomaterial risk score islow.